Continuing Recovery in PA Finances
November 7, 2005
Mr George Abed, a former senior official at the IMF, currently holds the position of Governor of the Palestinian Monetary Authority.
He stressed to the world financial community that the Palestinian banking system is "making healthy progress", and "Palestinian banks are overflowing with deposits".
Confirmation of Abed's analysis has come from another Palestinian source.
"Market Talk" is a newsletter, sponsored by members of the Palestinian financial and business sector. In its latest issue, it commented that:
The Palestine Monetary Authority reported another rise in total deposits. An increase of $96 million brought total bank deposits to $4,710 million as of the end of August 2005.
The full article is reproduced here:
Palestine Monetary Authority
August 2005 Report
The Palestine Monetary Authority reported another rise in total deposits. An increase of $96 million brought total bank deposits to $4,710 million as of the end of August 2005. Deputy Regional Manager at Cairo Amman Bank Ma'an Daraghmeh attributes this rise in bank deposits to two primary reasons, "First new investors from various Arab countries are becoming more attracted to the Palestinian financial market, as can be confirmed by the significant growth in trading volumes at the Palestine Securities Exchange. The second reason is the expected improvement in the political situation and business environment after the disengagement from Gaza."
Credit to the private sector also increased slightly by 2.5% or $28.5 million during the month of August for a total of $1,147.5 million, resulting in a credit-to-deposit ratio of 27% (an increase of 2% compared to August of last year).
Mr. Daraghmeh expects a continuing rise in banks' credit portfolios, particularly in short-term loans. This anticipated rise is due to increased investments in capital markets by companies and individuals, which are being financed by loans secured by stocks. The volume of mid-to-long term credit is expected to increase in the coming period, as the political situation continues to improve.
Left: Yasser Arafat
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